Swedish Stirling wins $49M Glencore contract
Clean-tech power generation company Swedish Stirling has secured an 8-year, R700 million (US$49 million) contract with Glencore to deliver 25 of its 10MW engines to power the Merafe Lion ferrochrome smelter in South Africa.
Swedish Stirling will provide the 25 PWR BLOK 400-Fs engines under an energy conversion service agreement that is estimated to offset carbon dioxide emissions from the Lion smelter by over 500,000 tonnes.
“The Lion smelter is one of the world’s largest ferrochrome smelters. For Swedish Stirling, this development is recognition that the PWR BLOK is a key solution for energy recovery in the metallurgical industry, and is the starting point for a large commercial roll-out, said Gunnar Larsson, CEO of Swedish Stirling.”
“We are excited to implement this project which we hope will reduce both our production costs and carbon dioxide emissions. This project is part of Glencore’s ambition to achieve net-zero total emissions by 2050, said Japie Fullard, Head of Ferroalloys Industrial Assets at Glencore”
The first PWR BLOK is expected to be delivered to Lion in 2022. The facility will be owned and operated through a special purpose vehicle, established and controlled by Swedish Stirling.
Each PWR BLOK 400-F contains 14 Stirling engines and delivers a net output of 400 kW. The container is placed next to facilities where the combustion of residual gases occurs and converts the energy in the gas to electricity.
Swedish Stirling has said a customer’s payback period for the PWR BLOK 400-F is about three years.
In August 2020, clean-tech company, Swedish Stirling entered into a letter of intent with Glencore regarding discussions on potential energy conversion services at the Lion smelter in South Africa comprising the possible installation of up to 88 PWR BLOK 400-Fs.
“We are excited to implement this project which we hope will reduce both our production costs and carbon dioxide emissions. This project is part of Glencore’s ambition to achieve net-zero total emissions by 2050, said Japie Fullard, Head of Ferroalloys Industrial Assets at Glencore”
